South Star Mining Announces Approval of the MiningLicense for the Santa Cruz Graphite Project
South Star Mining Announces Approval of the MiningLicense for the Santa Cruz Graphite Project
Toronto, ON - January 6, 2021 - South Star Mining Corp. ('S outh Star' or 'the Company')
(TSXV:STS) (OTC:STSBF) is pleas ed to announce the approval of t rial mining license for a
period of 3 years for the Phase 1 Pilot Plant Operations (5,000 tpy of concentrate) for the Santa
Cruz Graphite Project (‘the Project’) in Bahia, Brazil. As ann ounced on October 5, 2020, the
environmental license for Phase 1 was renewed for a period of 4 years in October of 2020. With
the approval of the mining license, the Project is now fully licensed and can proceed to the Phase
1 construction, commissioning and operations.
The Company is advancing with conversations regarding project f inancing, and as previously
announced in October of 2020, the Brazilian Development Bank (B NB) has pre-approved
C$7.5M of debt financing. BNB is currently reviewing the techni cal documents and advancing
with the Project credit analysis.
South Star CEO Richard Pearce com mented: “We are extremely exci ted about the approval of
the final permitting hurdle for t he Phase 1 operations of the P roject, and we continue the drive
towards 2021 production. We are now in a position to advance t owards construction, and the
battery metals market appears to be further improving with incr easing demand for high-quality
concentrate worldwide. South Star can become a provider of high -quality, large-flake Brazilian
graphite concentrate for many years ahead.
With the Phase 1 permitting requirements behind us, our next goals will be to focus on arranging
an off-take agreement and securing the financing package for the Project construction. The final
design package for construction along with selection of the firm responsible for the Engineering,
Procurement and Construction Management (EPCM) is estimated to be finalized in March of
2021. I would like to thank our current shareholders and all th e Project stakeholders for their
continued support and look forward to an exciting 2021.”
About South Star Mining Corp.
South Star Mining Corp. (TSX.V: STS) is focused on the selective acquisition and development
of near-term mine production projects in Brazil to maximize sha reholder value. STS has an
experienced executive team with a strong history of discovering , developing, building and
operating profitable mines in Brazil.
The Santa Cruz Graphite Project is located in Southern Bahia, the third largest graphite producing
region in the world with over 70 years of continuous mining. Th e Project has at-surface
mineralization in friable materials, and successful large-scale pilot plant testing (>30t) has been
completed. The results of the testing show approximately 65% o f Cg concentrate is +80 mesh
with good recoveries and 95-99% Cg. With excellent infrastructu re and logistics, South Star is
planning the commissioning of the 5,000 tonne per year pilot pl ant for the end of 2021.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
Ph: +1 (314)266-0793 (US)
Ph: +55 (11) 2308-6839 (Brazil)
Email: [email protected]
For additional information, please contact:
Mr. Dave McMillan
Chairman
Ph: +1 778-773-4560
Email: [email protected]
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x 251
Email: [email protected]
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information
The information contained herein contains "forward -looking statements" within the meaning of applicable
securities legislation. Forward-look ing statements relate to information that is based on assumptions of
management, forecasts of future results, and estima tes of amounts not yet det erminable. Any statements
that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events
or performance are not statement s of historical fact and may be "forward-looking statements."
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual
events or results to differ from those reflected in the forward-looking statements, including, without limitation:
risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related
to the outcome of legal proceedi ngs; political and regulatory risks a ssociated with mining and exploration;
risks related to the maintenance of stock exchange listings; risks related to environmental regulation and
liability; the potential for delays in exploration or development activities or the completion of feasibility
studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the
geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and
cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility
studies, and the possibility that future exploration, development or mining results will not be consistent with
the Company's expectations; risks related to gold pric e and other commodity price fluctuations; and other
risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in
the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from those described in forward-
looking statements. Investors are cautioned against attributing undu e certainty to forward-looking
statements. These forward-looking statements are made as of the date hereof and the Company does not
assume any obligation to update or revise them to re flect new events or circumstances. Actual events or
results could differ materially from the Company's expectations or projections.